First Majestic Silver Q3 2025 Earnings Report

First Majestic Silver EPS Results

• Actual EPS: $0.07
• Consensus EPS: $0.11
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: -$0.09

First Majestic Silver Revenue Results

• Actual Revenue: $285.10 million
• Expected Revenue: $429.78 million
• Beat/Miss: Missed by -$144.68 million
• YoY Revenue Growth: +95.30%

First Majestic Silver Announcement Details

• Quarter: Q3 2025
• Date: 11/5/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, November 5, 2025
• Conference Call Time: 11:30AM ET

First Majestic Silver (NYSE:AG) (NYSE:AG) engages in the production of silver from its wholly owned operations in Mexico. Headquartered in Vancouver, British Columbia, the company focuses on acquiring, developing and operating high-grade silver projects. Established in 2002, First Majestic has built a multi-mine portfolio to supply silver primarily for the global industrial and investment markets while generating by-products such as gold, lead and zinc concentrates.

First Majestic’s principal operations are located in the historic Mexican Silver Belt, with producing mines including La Encantada in Coahuila, Santa Elena in Sonora and La Parrilla in Durango. The company’s integrated model covers exploration, mine development and mineral processing, supported by onsite milling facilities and a logistics network to deliver concentrates to regional smelters. Ongoing exploration programs aim to extend mineral reserves and optimize mine life across each asset.

Since its founding, First Majestic has grown through strategic acquisitions and project expansions, positioning itself as one of the largest primary silver producers listed on the NYSE. The company emphasizes responsible mining practices, implementing environmental, health and safety protocols and fostering partnerships with local communities to promote sustainable development in its operating regions.

Led by President and Chief Executive Officer Keith Neumeyer, First Majestic is overseen by a board of directors with extensive experience in mining finance and technical operations. With its corporate team based in Vancouver and regional offices in Mexico, the company continues to advance its exploration pipeline and pursue opportunities aimed at enhancing production and long-term shareholder value.

First Majestic Silver Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record Q3 results: Produced 3.9 million oz silver in the quarter (11.3M YTD) with record revenue, $140M cash flow, EBITDA of $128M and over $560M in cash on hand.
• Negative Sentiment: Longstanding Mexican tax dispute remains unresolved (8–13 years); management says it is not material, weekly government discussions are ongoing and the company will not discuss details beyond public disclosures.
• Positive Sentiment: Operational growth and discoveries: Los Gatos integration is complete with plans to raise throughput to 4,000 tpd, Santa Elena discoveries (Navidad and Santo Niño) will extend mine life, San Dimas is improving and La Encantada is moving to sub-level caving by Q1 2026 to cut costs.
• Positive Sentiment: Strong liquidity and portfolio assets: ~$140M in marketable securities (Sept 30), significant cash reserves, and ~758k oz silver plus ~3.9k oz gold held in inventory (≈$50M of deferred revenue); dividend policy remains in place and the company has been buying back shares.
• Neutral Sentiment: Company plans to issue 2026 guidance in January (including throughput and budgeting targets) and will update Navidad resource estimates in March, with additional disclosure planned on Jerritt Canyon timing-dependent.

Presentation

[Operator]

Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver 2025 Q3 financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. If you are participating through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Mr. Keith Neumeyer, President and Chief Executive Officer of First Majestic Silver. Keith, please go ahead.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Okay. Thanks, Operator, and welcome, everyone. That's how I'll dial in today, and we'll likely be listening to this recorded over the next few hours or next few days. What's turned out to be what we thought was going to be a fantastic day for us, putting out record Q3 numbers. I think we used the word record 18 times in our news release. Yet, obviously, the focus today is on this tax issue that came up or has been there for years, which I'll address a little bit. As the market was opening this morning, I saw a headline come out of SilverSeek. I'm not sure who wrote that headline, but the guy's obviously an idiot. I then saw, unfortunately, TD put out a statement as well. Nothing against TD.

[Keith Neumeyer, President and CEO at First Majestic Silver]

TD has been a great financial partner of First Majestic for quite some time, a decade. Their analyst, unfortunately, came out with the most bonehead headline that I've probably ever seen from an analyst in my career. I'll read it to you. It says, "Q3 results in line," which is good. Focus on ongoing tax reassessment, which is completely bullshit. Wayne, you should know better than that. Management is not focused on taxes. First Majestic is a mining company. Our job is to get silver out of the ground in an economical fashion that's following the environment and our social responsibilities on site at the different operations that we do. We look for ongoing efficiencies on trying to reduce our costs and create wealth for our investors. That's our job.

[Keith Neumeyer, President and CEO at First Majestic Silver]

The tax dispute that seemingly some people are focused on today has been with the company for 13 years. There's no change. We continually work with the Mexican government to resolve the issue. I can tell you there's at least weekly meetings that occur in discussions on this particular item. I can also tell you that the Canadian government is now involved in discussions with the Mexican government, which is quite nice to see. I can tell you our team of experts over several law firms and consultants and inside staff pay a lot of attention to this, obviously. It's not what we view as a material issue for the company. Whenever the issue does get resolved, we will put out disclosure to discuss further these items. We do do disclosure.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Over the last decade, or the last eight years, pardon me, we've had disclosure in our financial statements in regards to any potential liability in the business, including this tax issue. It's fully out there in the public. We do get questions from institutional investors from time to time, and we answer those questions. We're completely and always very, very transparent. We did update our language in our financial statements, our MD&A, and we put out some language in our news release today just to bring shareholders up to date or investors up to date. That's where we are. We'll continually work with the Mexican government to further resolve the issue at hand. Timing, who knows? It could be another year. It could be another two years. We have no idea. It's been going on for 13 years. There's obviously some focus on this.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Going back to my earlier comment, I can tell you it's definitely not a focus of management because we don't look at this tax issue as material to the business in any way. Interestingly enough, for those who actually want to dig a little bit deeper, the President of Mexico actually had a news conference on Friday, one of her regular news conferences. One of the reporters asked her about this particular issue because, as you can tell by some of the press, you've got these sensational headlines showing up. They're trying to sell newspapers or whatever the heck they're trying to do that have completely misrepresented the situation. The President of Mexico has said that the issue still remains outstanding and negotiations are still underway. I think that's probably the most accurate statement that's been made public from the Mexican government.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Unfortunately, the press did not pick that up. Nevertheless, that is the facts. Also, being in Mexico for 22 years, I think we are probably one of the most well-positioned companies in Mexico to handle such issues. We need to focus on getting the answer out of the ground. That is what we do. We came out with one of the best quarterly—well, actually, the best quarterly financial statement we have ever had in the company's history. The analysts are focusing on completely the wrong thing. I should have introduced the people that are on this line with me. As you can probably tell, I am slightly irritated. We do have Steve Holmes, our Chief Operating Officer, online. We have also got David Soares, our CFO, online. We also do have Samir Patel, our Corporate Counsel, there. Mani Alkhafaji, what many of you probably know, our VP Corporate Development.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Darrell Rae, Manager of Investor Relations, is also online. If questions do come up that I elect to pass on to them, I may elect to do that. We will not be taking questions on the tax issue because I do not think it is appropriate in a call like this to have those types of discussions. There are several moving parts and things going on behind the scenes that are constantly occurring and have been occurring over the last eight years. Our disclosure is our disclosure, and we are not willing to go beyond the disclosure that we currently have in our financial statements, our MD&A, and our news release. Let's talk about some positive stuff, the stuff that we have really been doing as a company that investors should really be caring about. I have got a presentation in front of me, and I am on slide two of the presentation.

[Keith Neumeyer, President and CEO at First Majestic Silver]

We had a record silver quarter, silver-producing quarter, 3.9 million oz, 11.3 million oz year to date. The revenues in the quarter were another record quarter. As I said, we said record 18 times in our news release. There is just record after record after record. Cash flow is record $140 million. We have a record cash position. We have over $560 million in the bank. Our mint has had a record quarter as well. The money is coming in, and the business is doing extremely well. We are dealing with mining, of course, but it is hard to knock the third quarter. I am very positive that we are going to end 2025 on a very positive note, having a very good Q4 as well. Without getting into details and reading everything on the slide, the slide presentation that I have in front of me is on the company's website.

[Keith Neumeyer, President and CEO at First Majestic Silver]

For those interested parties, feel free to have a look at it. If you do have additional questions, feel free to call the company, and we can get into further details. Going on to slide three, you see the growth in silver ounces. As I said already, our record silver production, our costs have come down, which is fantastic. You're seeing a lot of cost creep within the mining sector, which I've noticed through other companies putting their financials out. For our costs to come down was really nice to see. Jumping to slide four, we're hitting all the metrics in our guidance. We're three-quarters of the way in, or he says September 30th. We're three-quarters of the way into the year, and we're right on track with all the metrics that we put out in our guidance that we released in July of this year.

[Keith Neumeyer, President and CEO at First Majestic Silver]

We're on track to meet all of our guidance, north of 30 million silver equivalent ounces. I think all of you probably know the breakdown: 55% silver, 35% gold, and 10% in the form of lead and zinc. Our purity is there, and we remain the purest silver company in the space of the silver players that all of you are very familiar with. Jumping along to slide five, Los Gatos was a big acquisition for us that closed in January. Bringing all the systems in place, bringing the First Majestic way of doing business took some time. SAP and other systems that we brought over from corporate, from First Majestic, have now all been implemented now. It's nice to see. We have a plan to get throughput up to 4,000 tons a day, and that plan is being put together now.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Look for our guidance in January 2026, and you'll see more color on our budgeting to achieve this. Los Gatos has been a great asset for us and a super great addition to our portfolio. Jumping to Santa Elena, everyone knows, I'm sure most of you who are listening today have watched our news releases. Great exploration results. Two major discoveries in the last 12 months, which is pretty unusual. You don't normally see two discoveries that close to back, but the Navidad and the Santo Niño discoveries are huge, and will add multiple years to the life of mine of this operation. Again, look for guidance in January on some costs that we're going to be implementing over the next couple of years to get into those areas of the property to bring that ore into the mill and maintain or potentially even increase.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Production at Santa Elena over the next three, four, five years. That is pretty exciting. At San Dimas, it goes without saying that we have seen some pretty substantial improvements, quarter over quarter there. Costs are now coming down, production's going up. It is now within budget after a challenging previous couple of years, which all those issues are now behind us. It is really nice to see San Dimas back on track. We have got some plans there to continually expand that operation and look for further guidance in the quarters to come. Looking at La Encantada, our smallest mine, which is less important of the top three, we are changing the mining operation there to sub-level caving. It is pretty interesting, and it is going to reduce costs and help that operation out quite a lot. That is being implemented now and will be fully up and running by Q1 of 2026.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Look for improvements and looking at Tata in 2026. Jumping to slide six. I've already covered the revenue, record revenue. I saw one of the analysts come out and say there was a miss on revenue, which is not sure what analyst that said. Anyway, the 758,000 oz of silver that we kept in inventory and the 3,900 oz or almost 4,000 oz of gold, that's $50 million in revenue that we held over the quarter. Our shareholders want to see that. It's a lot of embedded revenue. Some of that revenue will show up in Q4. I think the analysts that follow the company should take note of our inventory levels because it is something that we have focus on. As a silver gold company, I think that.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Our input from our investors and shareholders worldwide want us to see inventory levels at these types of rates. It is very positive. We could all, obviously, it is our choice. It is like cash. If we do want to convert those ounces into revenue at any time, we could do it quite easily just on a phone call. There is really $55 million in net earnings that would have showed up. Oh, pardon me, that is in relationship to the securities that we have been monetizing. Another bullet point. We do treat our portfolio, I gather, maybe in a unique way. We do not put it on our balance sheet. We have virtually our entire portfolio in other comprehensive income. We do monetize that, and we have been monetizing that.

[Keith Neumeyer, President and CEO at First Majestic Silver]

If the analysts would like to look at that, maybe they want to focus on that number as well because I think it's a quite important number. There's a lot of cash sitting in our reserves in the form of marketable securities that I don't think people take into consideration. There is a slide coming up, which I'll point out again, that shows that value. Our safety performance has been very good, and our sustainability has improved as well. We're one of the best-producing mining companies in the space and recognized by the different agencies, which is obviously nice to see. Jumping along to slide seven, this points to my previous comment of marketable securities, which is $140 million sitting there. That's as of September 30, and the market's improved even further since then.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Who knows what that number's going to be as of December 30th? It is a significant amount of our liquidity. It is as a result of our deals we've done on the M&A front over the last couple of years, which I think is pretty helpful for the business overall. Jumping along to slide eight. Again, another record. I've already touched on records, but $98 million in operating cash flow. Obviously, pretty significant. Los Gatos was not—pardon me—Los Gatos was a significant contributor to that, which is obviously fantastic. It's great to see. Going to the next slide, slide nine. Our EBITDA. Another record, $128 million in EBITDA. I'm not going to go over each of these items because if you're looking for further details on all the bars here, I'm not going to bother covering them.

[Keith Neumeyer, President and CEO at First Majestic Silver]

If you do have further questions, feel free to talk to Darrell or Mani at any time you wish to. Jumping to our next slide, the dividend policy. As all of you know, the dividend's intact, and obviously, with our significant cash balances and our significant portfolio, actually, I'd like to see that dividend increase, but we'll see how that transpires over time. Looking at slide 11. The integration is pretty well done. There are a couple of items that we're still working on, but look for increased balance sheet improvement in Q4. I would expect to see that as a result of our production and obviously metal prices. We're still aggressively doing exploration. We're likely not going to get a chance to talk about Jerritt Canyon today, but we do have some interesting exploration things happening there.

[Keith Neumeyer, President and CEO at First Majestic Silver]

We do hope to put out an update news release on Jerritt Canyon at the end of the year. If not end of the year, early 2026, but our objective is to hopefully have some news out on a go-forward plan of Jerritt Canyon by the end of this year. I do not want to talk too much about it on today's call. I know we do get a lot of questions about Jerritt Canyon, but I would rather wait until we do come out with some further disclosure just to talk about the whole picture. We will be updating our resource estimates at the Navidad project as well in March of next year, which is obviously pretty exciting. As I touched on already, the Los Gatos input increase to 4,000 and the Santa Elena mill increased to 3,500. It is all coming into our budget in 2026.

[Keith Neumeyer, President and CEO at First Majestic Silver]

We hope to talk further about that when we come out with our guidance for 2026. That was really the end of the presentation. I know the guys in Vancouver are watching for questions, so I'll pass it on to Mani and the team in Vancouver.

[Mani Alkhafaji, VP of Corporate Development at First Majestic Silver]

Yeah. I think, Keith, you've probably addressed a couple of the questions on Jerritt. The one question that's coming up here is, are you doing any share buyback at these prices?

[Keith Neumeyer, President and CEO at First Majestic Silver]

We did some today. We did some yesterday.

[Mani Alkhafaji, VP of Corporate Development at First Majestic Silver]

It concludes the web questions that we have.

[Keith Neumeyer, President and CEO at First Majestic Silver]

Okay. That's good. Thanks for everyone's time. For those who are listening to this after the fact, I encourage you to call into the office or send us an email. If you have further questions, we're always happy and willing to answer any queries that come in from interested investors and shareholders.

[Operator]

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Participants

Executives

• Mani Alkhafaji, VP of Corporate Development
• Keith Neumeyer, President and CEO